Vietnam suffers FDI drop of 8.2% to $6.7 billion in Jan.-May period

Luu Van Dat Tuesday | 05/26/2020 22:05

Manufacturing is the most attractive industry to foreign investors in the first four months of 2020. Photo: Nhan Dan

Vietnam received $6.7 billion in FDI in the first five months of 2020, down 8.2% from a year ago, according to data released by Ministry of Planning and Investment on Tuesday.

As the coronavirus pandemic has slowed the global economy, five-month pledged FDI fell 17% to $13.89 billion, the ministry said in a statement.

Of the pledged foreign investment, 49.5% are due to be invested in manufacturing and processing, while 28.2% would go to gas, water and electricity distribution, it said.

In the reported period, Vietnam licensed 1,212 foreign-invested projects worth a total of $7.4 billion, while pledges to existing projects increased 31% to $3.4 billion. Capital contributions and share purchases saw steep declines to nearly $3 billion.

Mekong Delta’s Bac Lieu province was the largest recipient of foreign investment with $4 billion, mainly thanks to a $4 billion liquefied natural gas (LNG) power plant in the province.

Such an investment made Bac Lieu the largest recipient of foreign investment and power generation the most attractive industry.

In May alone, pledged FDI fells 27.6% to $1.55 billion while disbursed foreign investment slightly dropped 3% to $1.55 billion.

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